How secret are my strategies with a retail broker?

[padutrader]

secret strategies do not work.......do you really think any one's person trading can move markets so that it will make profit?

if no one knew the secret, they- everyone-would trade against you and you will never make money.

you have to do what everyone else is doing.

that is why intelligence does not work with markets....being a sheep does

 

[thursday]

Trolling aside, pretty sure most of the regulated brokers are following the compliance of not divulging your personal information to other.

 

[Nobert]

Very secret. Even Pentagon don't know.

Seriously, - there's nothing new to invent.

 

[userque]

If I'm using a retail broker, and my account makes a lot of money there, is anybody who works for that broker going to see what I'm doing and tell his hedge fund buddies about it? Are there any privacy laws about that sort of thing?

Despite all of the non-brokers here, telling you, with 100% certainty, that all employees at all brokerages are angels; see here for at least a couple of more realistic responses:

https://futures.io/brokers/36902-can-brokers-piggyback-their-customers.html

 

[globalarbtrader]

Despite all of the non-brokers here, telling you, with 100% certainty, that all employees at all brokerages are angels; see here for at least a couple of more realistic responses:

https://futures.io/brokers/36902-can-brokers-piggyback-their-customers.html

There's a difference between a broker copying your strategy which has indeed been discussed ad infinitum and nothing more needs to be said, and piggybacking on your order flow. The latter is possible, but only if (a) you're very large and (b) you're very slow. So if you're a large long only manager who reliably shifts their position over the first few days of every month, I'd be careful. The rest of us are probably fine.

GAT

 

[userque]

There's a difference between a broker copying your strategy which has indeed been discussed ad infinitum and nothing more needs to be said, and piggybacking on your order flow. The latter is possible, but only if (a) you're very large and (b) you're very slow. So if you're a large long only manager who reliably shifts their position over the first few days of every month, I'd be careful. The rest of us are probably fine.

GAT

While that thread was started with 'that title,' the discussion expanded beyond mere 'piggybacking.'

Additionally, if I piggyback your strategy, am I not simply copying your strategy?

Your broker doesn't need to use the 'order flow' to see your trades.

 

[globalarbtrader]

While that thread was started with 'that title,' the discussion expanded beyond mere 'piggybacking.'

Additionally, if I piggyback your strategy, am I not simply copying your strategy?

Your broker doesn't need to use the 'order flow' to see your trades.

There is a difference, and it certainly isn't clear to me having read all the previous posts on this thread again which type of copying people are talking about.

If I have worked out what your strategy is, I don't need to continue watching your trades. I can sell your strategy to someone else. But this is very difficult (beyond the fact that given someones returns or trades, unless they are doing something very weird, most people could work out what style of trading they are doing, but they wouldn't be able to replicate the strategy precisely).

On the other hand, if all I am doing is anticipating your next trade based on your recent flow, I need to keep you as a customer. Also I can't really 'sell' this information except perhaps in an aggregated form (some banks offer this for FX flows for example, which is more valuable since it's OTC information that isn't otherwise published). I take your point that the market generally can also work out if a 'whale' is dumping or acquiring a big position, but it's easier and quicker for the whales broker to do that.

GAT

 

[userque]

There is a difference, and it certainly isn't clear to me having read all the previous posts on this thread again which type of copying people are talking about.

If I have worked out what your strategy is, I don't need to continue watching your trades. I can sell your strategy to someone else. But this is very difficult (beyond the fact that given someones returns or trades, unless they are doing something very weird, most people could work out what style of trading they are doing, but they wouldn't be able to replicate the strategy precisely).

On the other hand, if all I am doing is anticipating your next trade based on your recent flow, I need to keep you as a customer. Also I can't really 'sell' this information except perhaps in an aggregated form (some banks offer this for FX flows for example, which is more valuable since it's OTC information that isn't otherwise published). I take your point that the market generally can also work out if a 'whale' is dumping or acquiring a big position, but it's easier and quicker for the whales broker to do that.

GAT

Sounds like we're conflating 'copying a strategy' and 'reverse engineering a strategy.'

One means copying the trades of a strategy.
The other means reverse engineering trades to unearth the underlying strategy.

I meant, and have been discussing, the former.

Regardless, it should be obvious to most that if you are a successful trader, that employees of your broker may want to see what you're doing. At least in my opinion.

I read a detailed post from an insider that explained that it does happen. I wasn't able to find it in time for this post.

Nevertheless, I found it odd that so many folks here essentially believe it's silly to think that it could/does happen...all without a basis for saying so...in a world where so much cheating goes on. Very odd.

 

[Daal]

If you are Jim Simmons you need to worry about that, you are not Jim Simmons

 

[jys78]

No one cares. At all.